Net leverage is the percentage, in excess of 100%, of the total value of equity type investments, divided by net assets.

Portfolio Composition

Top 10 Positions

% of Net Assets

1. Advisory Board (The)

1.1

%

2. Carter’s

1.1

3. Mohawk Industries

1.1

4. Lincoln Electric Holdings

1.0

5. HEICO Corp.

1.0

6. Nordson Corp.

1.0

7. Coherent Inc.

1.0

8. Reliance Steel & Aluminum

0.9

9. PAREXEL International

0.9

10. Ethan Allen Interiors, Inc.

0.9

Top Five Sectors

% of Net Assets

1. Industrials

29

%

2. Information Technology

20

3. Financials

17

4. Consumer Discretionary

14

5. Materials

8

Recent Developments

The Board of Directors of Royce Value Trust, Inc. has approved, subject to stockholder and other regulatory approvals, the contribution of approximately $100 million of RVT’s assets to a newly formed non-diversified, closed-end investment company, Royce Global Value Trust, Inc. (“RGT”). All of RGT’s common stock would then be distributed to the common stockholders of RVT. There is no assurance that necessary stockholder and regulatory approvals will be obtained.